1. Ministry of Energy GREEN MINI-GRID REGULATORY REFORM
Africa Carbon Forum
April 2018 | Gigiri, Nairobi | Kenya
GREEN MINI-GRID REGULATORY REFORM
Eng. Isaac N. Kiva
Secretary, Renewable Energy
Ministry of Energy

2. Core Objectives of Kenya’s Strategic Energy Plan
11/10/2018 6:43 AM
Increase electricity generation capacity from cheaper, sustainable and reliable energy sources – lower cost of power
( To cost about 9 US cents for industries and 10 US cents for domestic tariff by 2020)
Expand and upgrade the transmission and distribution network infrastructure – reduce power loss, lower cost of power, increased revenue generation, stable power network
Increase electricity access country wide to increase the uptake of power and grid / off-grid network extension – socio-economic growth, increased and devolved industries
To achieve access of 70% by 2017 and universal access by 2020
Key
objectives:

3. Electricity Access Growth: Customer Numbers
11/10/2018 6:43 AM
Electricity Access Growth: Customer Numbers
Our Intention is to Deliver Universal Access to Energy in Kenya by 2020
2013: 2.33 m 31%
2014: 2.77 m 35%
2016: 4.85 m 58% %
Universal Access
2020
2015: 3.61 m 45%
Year
Population size “Million”
2013
41.8
2014
43.0
2015
44.2
2016
45.7
2017
46.3
2020
52.0
Average household size is taken as 5.5
Current connected: 6.5 million, > 72%

4. Electricity Access Strategies
Last Mile Connectivity:
Phase 1- Those near transformers
Phase 2 – Increasing the transformers
Phase 3 – Reaching off grid areas
Off-grid Solutions:
- Mini-grids- with hybrid solar/wind
- Solar Home Systems
- Solar Lanterns
Global Partnership Output Based Aid (GPOBA) Targeting highly populated settlements e.g Kibera 1.9 Million Kenyans to benefit across all 47 counties.

5. Off Grid Electrification
Currently there are 21 public operational mini grids
All are owned by REA and operated by KPLC
All these are diesel based but nine have been retrofitted with Renewable Energy
Total Installed Capacity is 24.86MW
Thermal- 23.7
Solar MW
Wind – 0.55 MW
Seven mini-grids are under development thru REA

6. On-going Programmes
REA developing 25No. solar mini-grids of about 60kWp each in 25No markets in off-grid areas. Works in procurement stage
Development Partners funding mini grid development
World Bank – $ 11 million- 10 mini grids under KEMP
AFD- Eur 33 million- Retrofitting 23 off-grid stations
KFW- Eur 15 million- 3 green field mini-grids
DFID/GIZ- Eur 2.1 million- small mini grids
DFID/AFD- £30 million Green Mini grid Facility for private sector
NDF- Euro 4 million- Retrofitting of one off-grid station
Various Partners- Technical Assistance, Grants, Loans etc
World Bank Off-grid facility commenced- to facilitate private sector to deliver electrification thru mini grids and solar home systems(total funding $150million)

7. Scale-up of off-grid solutions is required to achieve GOK targets
Transform Kenya into a newly industrializing, middle-income country providing a high quality of life to all its citizens.
Access to competitively-priced, reliable, quality, safe, and sustainable energy is essential for achievement of the vision.
National electrification rate of Kenya has increased from 23% in July 2009 to ~70% today
Kenya has an ambitious target of achieving universal electricity access by 2020
Last Mile Connectivity Program aims to provide 75-80% of Kenyans with electricity
Private sector has installed ~545,000 solar home systems primarily in Central Rift Valley and continues to expand service throughout Kenya.
However, the interconnected electricity system covers only the central corridor of the country: Mombasa-Nairobi-Lake Victoria
Scale-up of off-grid solutions is required

8. Kenya National Electrification Strategy
Balance KPLC intensification/expansion with service beyond the grid:
Rapidly densify grid connections through Last Mile program
Intensify KPLC service coverage where possible (short MV extensions)
Expand grid service to areas where expansion costs are below ~$1600/connection
Scale up off-grid service to meet energy needs of consumers who cannot be reached with grid service
Integrated planning: harmonize KPLC, REA & private sector planning; develop integrated annual investment plans; share results through the geospatial platform
Ensure high grid quality in all KPLC areas
Integrate low-cost grid expansion technology
Establish productive use programs

9. Geospatial Framework Used to Evaluate Options Using Digitized Structures, KPLC & Other Data

10. Mini-Grid Analysis
Mini-grids evaluated in area beyond KPLC grid expansion
Clustering households to form mini-grids with more than 100 consumers
Mini-grids with less than 500 consumers are LV, solar battery
Larger than 500 use MV and solar-diesel hybrids

11. Connections from 2020 Investment Plan
Intervention
Year 1
Year 2
Year 3
Total
Grid Expansion
44,153
96,883
133,280
274,316
Grid densification
360,012
676,311
1,238,356
2,274,679
Grid intensification
69,953
274,571
205,781
550,305
Mini-grids
9,745
9,075
16,704
35,524
Solar home systems
688,876
2,066,628
Totals
1,172,739
1,745,715
2,282,996
5,201,405

12. 2020 Full Access Investment Requirements
Intervention
Year 1
Year 2
Year 3
Total
Grid Expansion
$36.42
$122.67
$218.69
$377.78
Grid densification
180.01
338.16
619.18
$1,137.34
Grid intensification
82.25
340.43
256.34
$679.01
Mini-grids
13.12
12.15
22.53
$47.81
Solar home systems
144.66
$433.99
Totals
$456.46
$958.07
$1,261.40
$2,675.93

13. Funding Electricity Access
Rural Electrification Fund:
Establish in 1973 to fund Rural Electrification
Levy charged on all electricity consumers
For grid extension and rural electrification including mini grids
Development Partners: Have been funding various initiatives
World Bank AfDB EU
AFD KFW EIB
NDF DFID GIZ
All these Initiatives have led to successful enhancement of electricity access to the current level of 70%

14. Funding Electricity Access….2
Equalization fund
Fund supposed to bring the marginalized counties to same level with other counties
Consolidated Energy Fund
Proposed fund in the Energy Bill to fund among others, electricity access
Private Sector
Private sector has been constructing, owning and operating mini grids
Much success in solar home systems, solar lanterns, using innovative mechanisms like PAYG,
Private sector to play a key role in electrification, especially for off-grid areas

15. KOSAP: Overall Project Context
Objectives
To increase access to energy services in 14 underserved counties of Kenya
$150 million allocation with FY17 delivery; funded by World Bank and carbon fund
Targets Households, Communities, Enterprises, Water pumping
Targets Capacity Building
Components
Mini-grids for Community Facilities, Enterprises, and Households ($40 million)
Standalone Solar Systems and Clean Cooking Solutions for Households ($48 million)
Standalone Solar Systems and Solar Water Pumps for Community Facilities ($40 million)
Implementation Support and Capacity Building ($22 million)
Consumer Education and Citizen Engagement
Implementation Support and Strategic Planning and Program Management Unit
Capacity Building of County Governments
Implementation Arrangements
K-OSAP Implementation arrangements
MoEP, REA, KPLC and will be implementing agencies at the national level
County Government Representatives will be part of steering and technical working group set up to oversee project design and implementation. Representation from concerned ministries (Ministry of Health, Ministry of Education, Ministry of Interior and Ministry of Water) is present both at the Steering Committee and Technical Working group levels
Project Coordination Unit within MoEP

16. Facilitative Policies in Electricity Access
Cross-subsidy
Amongst electricity consumers
Uniform consumer tariffs—those served by mini grids charged similar national consumer tariffs according to category
Electricity connection
Standardized at Ksh 15,000 for those under Last Mile Project
Tax exemption
on solar systems and equipment for power generation

17. Pathway to Facilitate Appropriate Policies
Completed a study on Mini Grid Regulations and Business Model for Private Sector
Areas covered by the study: Mini Grids Tariffs, What happens when the grid arrives and Technical Standards
Policy on Private Sector Mini Grids and regulations under preparation
Will also include an addendum on the National Transmission and Distribution Grid Code, dealing with mini-grids

18. 11/10/2018
THANK YOU …